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HL Bill 2–EN 56/2

BUS SERVICES BILL [HL]

EXPLANATORY NOTES

What these notes do

These Explanatory Notes relate to the Bus Services Bill [HL] as introduced in the House of Lords on 19

May 2016 (HL Bill 2).

These Explanatory Notes have been prepared by the Department for Transport in order to

assist the reader of the Bill and to help inform debate on it. They do not form part of the Bill

and have not been endorsed by Parliament.

These Explanatory Notes explain what each part of the Bill will mean in practice; provide

background information on the development of policy; and provide additional information on

how the Bill will affect existing legislation in this area.

These Explanatory Notes might best be read alongside the Bill. They are not, and are not

intended to be, a comprehensive description of the Bill.

These Explanatory Notes relate to the Bus Services Bill [HL] as introduced in the House of Lords on 19 May 2016

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Table of Contents

Subject Page of these Notes

Overview of the Bill 5

Policy background 5

Bus franchising 5

Partnerships 5

Ticketing improvements 6

Bus registration and open data 6

Legal background 6

Territorial extent and application 7

Commentary on provisions of Bill 8

Advanced quality partnership schemes 8 Clause 1: Advanced quality partnership schemes [j200] 8

113C Advanced quality partnership schemes 8 113D Advanced quality partnership schemes: registration restrictions 8 113E Advanced quality partnership schemes: facilities, measures and standards 8 113F Advanced quality partnership schemes: traffic regulation orders 9 113G Notice and consultation requirements 9 113H Making of scheme 9 113I Postponement of scheme or of provision of particular facilities, taking of particular measures or provision

of particular standards of service 9 113J Effect of the scheme 10 113K Regulations about schemes involving existing facilities or measures which are already in effect 10 113L Variation and revocation of schemes 10 113M Variation: supplementary 10 113N Regulations about schemes 10 113O Guidance about schemes 10

Clause 2: Further amendments [j290] 10 Clause 3: Transitional provisions [j280] 11

Franchising schemes 11 Clause 4: Franchising schemes [j101] 11

123A Franchising schemes 11 123B Assessment of proposed scheme 12 123C Consent of the Secretary of State and notice 12 123D Audit 12 123E Consultation 13 123F Consultation document 13 123G Response to consultation 13 123H Making and publication of the scheme 13 123I Postponement of local service contracts 14 123J Effect of local service contracts: registration requirements and provision of services 14 123K Local service contracts 15 123L Exceptions to section 123K 15


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123M Variation of scheme 15 123N Revocation of scheme 16 123O Interim services and replacement services 16 123P Service permits 16 123Q Application for service permit 17 123R Conditions 17 123S Revocation and suspension 17 123T Appeals 17 123U Regulations about schemes 18 123V Transitional provisions about schemes 18 123W Guidance about schemes 18 123X Local service contracts: application of TUPE 18

Clause 5: Power to obtain information about local services [j102] 19 143A Power to obtain information about local services: franchising schemes 19

Clause 6: Further amendments [j190] 19

Advanced ticketing schemes 20 Clause 7: Advanced ticketing schemes [j601] 20

134C Advanced ticketing schemes 20 134D Notice and consultation requirements 20 134E Making a scheme 20 134F Effect of scheme 21 134G Guidance 21


Enhanced partnership plans and schemes 21 Clause 9: Enhanced partnership plans and schemes [j230] 21

138A Enhanced partnership plans and schemes 21 138B Further parties to a scheme 22 138C Requirements in respect of local services 22 138D Facilities and measures 23 138E Conditions relating to variation or revocation 23 138F Preparation, notice and consultation 24 138G Making of plans and schemes 24 138H Content of scheme 25 138I Postponement of scheme or part of scheme 25 138J Effect of plans and schemes 25 138K Variation 25 138L Variation: preparation, notice and consultation 26 138M Variation: making a variation 26 138N Variation: supplementary 26 138O Revocation 26 138P Regulations about plans and schemes 27 138Q Transitional provision about schemes 27 138R Guidance about plans and schemes 27 138S Application of TUPE 27

Clause 10: Information about local services [j232] 27 143B Power to obtain information about local services: enhanced partnership schemes 27

Clause 11: Registration of local services [j231aa] 28 6D Applications for registration where an enhanced partnership scheme is in operation 28

Clause 12: Cancellation of registration [j231bb] 28 6E Cancellation and control of registration where enhanced partnership scheme is in operation 28

Clause 13: Appeals [j231cc] 29 Clause 14: Traffic commissioner functions [j231dd] 29

6G Traffic commissioner functions where an enhanced partnership scheme in operation 29 6H Fees relating to relevant registration functions 29 6I Record of registration etc. 30


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Power to make traffic regulation orders 30 Clause 16: Powers to make traffic regulation orders [j236] 30

Information about English bus services 30 Clause 17: Power to require provision of information about English bus services [j301] 30

141A Power to require provision of information about English bus services 30

Registration of bus services 30 Clause 18: Variation or cancelation of registration: service information [j302] 30

6C Variation and cancellation or registration: service information 30 Clause 19: Rail replacement bus services [j401] 31 Clause 20: Registration of English local services: fees where functions contracted out [j701] 31

6J Contracting out of registration functions: fees 31

Bus companies: authorities in England 31 Clause 21: Bus companies: limitation of powers of authorities in England [j501] 31

General 31 Clause 22: Power to make consequential and supplementary provisions etc [jconseq] 31 Clause 23: Transitional, transitory or saving provisions [jtransit] 31 Clause 24: Extent [jextent] 31 Clause 25: Commencement [jcommence] 32 Clause 26: Short title [jtitle] 32

Schedules 32 Schedule 1: Further amendments: advanced quality partnership schemes [j290s] 32 Schedule 2: Further amendments: franchising schemes [j190s] 32 Schedule 3: Further amendments: advanced ticketing schemes [j690s] 32 Schedule 4: Further amendments: enhanced partnership plans and schemes [j235s] 33

Commencement 34

Financial implications of the Bill 34

Parliamentary approval for financial costs or for charges imposed 34

Compatibility with the European Convention on Human Rights 34

Related documents 34

Annex A ‐ Territorial extent and application in the United Kingdom 35

Minor or consequential effects 36 Clause 1: Advanced quality partnership schemes 36 Clause 4: Franchising Schemes 36 Clause 5: Power to obtain information about local services 36 Clause 6 (Introducing Schedule 2): Further amendments 36 Clause 9: Enhanced partnership plans and schemes 37 Clause 10: Information about local services 37 Clause 15 (introducing Schedule 4): Further amendments 37 Clause 17: Power to require the provision of information about English bus services 37 Clause 18: Variation or cancellation of registration: service information 37 Clause 19: Rail replacement bus services 37 Clause 20: Registration of English local services: fees where functions contracted out 37

Subject matter and legislative competence of devolved legislatures 38


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Overview of the Bill 1 The Bus Services Bill provides Local Transport Authorities (LTAs) with a wider set of tools to

use to address inefficiencies in their local bus markets and to work with commercial bus

operators to provide better local bus services for passengers. The Government would not

mandate which approach is to be taken, encouraging LTAs to pursue the most suitable

solution for their area.

2 The devolution agreements that the Government has already signed with North East, Tees

Valley, Liverpool City Region, Sheffield City Region, West Midlands, Greater Manchester,

West of England CA, East Anglia CA and Greater Lincolnshire and Cornwall have included a

commitment to introduce a simpler route to bus franchising than currently exists in the form

of Quality Contract Schemes (QCS) under the Transport Act 2000. This Bill provides the

powers for combined authorities with directly elected Mayors to implement bus franchising.

3 Alongside franchising, the Bus Services Bill delivers a variety of partnership options, via

strengthening of the current Quality Partnership Schemes in England (which become known

as Advanced Quality Partnership Schemes) and the introduction of new Enhanced

Partnerships.

4 The Bill also makes it easier for passengers to access information about routes, fares and

timetables, and ensure ticketing schemes meet passengers’ needs.

Policy background

Bus franchising 5 Franchising allows authorities to replace the current deregulated model of local bus service

provision in their area with a system whereby the authority specifies the services to be

provided and bus operators bid to provide those services – akin to the system currently

operated by Transport for London in London.

Partnerships 6 Currently, LTAs can enter into partnerships with local bus operators to improve local bus

services. Existing legislation enables LTAs and local bus operators to enter into voluntary

partnerships, which are not legally enforceable, and Quality Partnership Schemes (QP

schemes), which are legally enforceable and require LTAs to provide new infrastructure as

their contribution to the scheme.

7 The Advanced Quality Partnership Scheme (AQP scheme) provisions in the Bill build on the

existing QP scheme arrangements. Under an AQP scheme an LTA can introduce bus‐

improvement measures when a scheme is introduced instead of being restricted to providing

new infrastructure. It also broadens the categories of service standards which bus operators

participating in a scheme must meet, including a requirement that multi‐operator tickets are

marketed and advertised in a clear and consistent manner by all operators in the scheme.

8 The Bill also introduces a new form of partnership, the Enhanced Partnership (EP), to facilitate

better joint working between LTAs and bus operators. EPs would enable partnership working

to go further than under a QP scheme or AQP scheme by:

expanding the types of standards that partnership schemes can cover;

specifically providing for more joined‐up network planning; and


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allowing local implementation and enforcement of the scheme’s requirements.

9 It is intended that these powers will allow LTAs and operators to deliver some of the

outcomes that would only otherwise be possible under a franchising model.

Ticketing improvements 10 The objective of this policy is to ‘future proof’ the LTAs’ power to make multi‐operator

ticketing schemes, by ensuring that the advanced ticketing schemes can cover new

technologies, such as smart cards or contactless payment. It also places a requirement on

LTAs to have regard to any ticketing, partnership or franchising scheme any other relevant

LTA has developed, or is developing, when preparing their own scheme. This is designed to

benefit passengers travelling across the boundaries of different LTAs.

Bus registration and open data 11 The Bill includes the powers needed to achieve a step change in the information available to

bus passengers, making it easier for them to access details of timetables, fares and routes,

while streamlining the bus service registration process. The expectation is that this would

encourage third parties to use the information to develop journey planning websites and

applications, enabling passengers to have access to better information.

12 The Bill also addresses outstanding issues requiring amendments to primary legislation,

including clarity on the registration requirements for rail replacement bus services and a

Competition Commission (now the Competition and Markets Authority) remedy concerning

data about deregistered and varied services.

Legal background 13 The legislation relating to the existing policy is set out in a combination of primary and

subordinate legislation. The current provisions are the:

Transport Act 1968;

Public Passenger Vehicles Act 1981;

Transport Act 1985;

Greater London Authority Act 1999;

Transport Act 2000;

Local Government Act 2003; and

Local Transport Act 2008.


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Territorial extent and application 14 The Bill extends to England and Wales, but not to Scotland or Northern Ireland.

15 It is intended that the Bill should apply to England. The aim of the Bill is to provide LTAs whose areas are in England, outside London, with a wider and more effective set of tools

which can be used to improve local bus services.

16 There are no significant devolution issues.

17 At the moment, the registration of local bus services is reserved in relation to Wales, but the

Wales Bill envisages the National Assembly for Wales being given legislative competence in

this area.

18 See the table in Annex A for a summary of the position regarding territorial extent and

application in the United Kingdom. The table also summarises the position regarding

legislative consent motions and matters relevant to Standing Orders Nos. 83J to 83X of the

Standing Orders of the House of Commons relating to Public Business.


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Commentary on provisions of Bill

Advanced quality partnership schemes

Clause 1: Advanced quality partnership schemes [j200]

19 This clause inserts new sections 113C to 113O into Part 2 of the Transport Act 2000 to provide for Advanced Quality Partnership (AQP) schemes in England.

20 The Transport Act 2000 as amended by the Local Transport Act 2008 allows LTAs to establish

a Quality Partnership Scheme (QP scheme) with their local bus operators. Under these

existing QP scheme provisions, the LTA must commit to provide new infrastructure

(‘particular facilities’) and the bus operators commit to providing services of a particular

standard.

21 An AQP scheme differs from a QP scheme as it: allows an LTA to set up a scheme based on

bus‐improvement measures as well as, or instead of, infrastructure facilities; and adds new

standards of service that may be included in a scheme. These new standards of service include

requirements relating to:

the marketing and promotion of bus services, ticketing and fares;

how passenger information is provided; and

operators’ participation in ticketing and smartcard schemes.

22 An AQP scheme may only be made by an LTA or LTAs in England1. The existing QP scheme

provisions will continue to apply in Wales and to QP schemes made by an English LTA in

conjunction with a Welsh LTA (as provided for in Clause 2 and Schedule 1).

113C Advanced quality partnership schemes

23 This section sets out the fundamental requirements and principles of an AQP scheme. It

largely replicates for an AQP scheme the provisions in section 114 of the Transport Act 2000,

which allow LTAs to set up a QP scheme. However, it also includes the ability for an LTA to

create an AQP scheme on the basis of taking particular measures, rather than or as well as,

providing new facilities.

113D Advanced quality partnership schemes: registration restrictions

24 New section 113D allows an LTA to prevent or restrict the provision of local services; or

variation/withdrawal of local services. Such restrictions can be applied where the LTA

believes that the actions they prevent might be detrimental to the scheme. The restriction must

be described in the scheme.

25 These provisions largely reflect the equivalent provisions relating to QP schemes in section

114 of the Transport Act 2000 (as amended by the Local Transport Act 2008).

113E Advanced quality partnership schemes: facilities, measures and standards

1 A reference to "an LTA" in the notes for this sub‐clause should be taken as referring to "an LTA or LTAs".


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26 This section sets out requirements relating to the commitment by local authorities; and service

standards that may be included in the scheme. It replicates for an AQP scheme the equivalent

provisions in section 114 of the Transport Act 2000 concerning QP schemes but also provides

for measures to be taken by an LTA as well as or instead of the provision of infrastructure

facilities; and some new standards of services that may be specified in the scheme.

27 The new standards of services include requirements about ticketing structures and methods of

payment, and how information to passengers should be provided. Certain standards of

services can only be included in a scheme if there are no admissible objections to them from

relevant operators. The standards of services subject to admissible objections are different in

AQP schemes that include only facilities and AQP schemes that also include measures.

113F Advanced quality partnership schemes: traffic regulation orders

28 Facilities or measures contained in a Quality Partnership Scheme may require temporary or

permanent restrictions on traffic on one or more roads. These are provided by traffic

regulation orders made under the Road Traffic Regulation Act 1984. If the road with which

such an order is concerned is the responsibility of another local authority or the Secretary of

State then this new section requires that they are also a party to the AQP scheme.

29 Subsections (1) and (2) largely replicate sections 114(7) and (8) of the Transport Act 2000 which concern QP schemes, but apply also to measures specified in a scheme. Subsections (3)

and (4) largely replicate subsections 114(9) and (10) of the Transport Act 2000.

113G Notice and consultation requirements

30 This new section specifies that when an LTA proposes to make a scheme, it must first give

notice of the scheme and consult on it. It sets out how the notice is to be given and who the

authority must consult.

31 113G largely replicates the equivalent provisions for QP schemes at section 115 of the

Transport Act 2000.

113H Making of scheme

32 113H sets out the arrangements for requirements for making, including specifying what must

be included in, an AQP scheme. Mandatory requirements include:

the facilities and/or measures to be provided by the LTA,

the standard of services specified for bus operators;

any registration restrictions imposed;

the scheme’s period of operation; and

when different facilities, measures and standards of services come into force.

33 The scheme may also exclude certain services or class of services.

34 This new section largely replicates section 116 of the Transport Act 2000 regarding QP schemes, but includes specific reference to measures (as well as facilities) in subsections (2),

(4), (5), (7) and (8).

113I Postponement of scheme or of provision of particular facilities, taking of particular

measures or provision of particular standards of service

35 This new section sets out the arrangements for postponing key aspects of the scheme. Before

making a postponement decision, the LTA must consult all operators that would be affected


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and give notice. The scheme may not be postponed for more than 12 months.

36 113I largely replicates section 117 of the Transport Act 2000 which relates to QP schemes, but

includes specific references to measures (as well as facilities) in subsection (3)(b).

113J Effect of the scheme

37 113J places obligations on authorities and operators arising from the scheme. It largely

replicates the equivalent QP scheme provisions at section 118 of the Transport Act 2000, but

includes specific references to measures in subsections (1), (2), (3) and (5).

38 As, unlike a QP scheme, an AQP scheme can include the provision of measures, subsection (5)

requires operators to provide a written undertaking to provide services to the standards

specified under the scheme if they wish to ensure that authorities take the measures under the

scheme.

113K Regulations about schemes involving existing facilities or measures which are

already in effect

39 The new section 113K gives the Secretary of State power to make regulations about schemes

involving existing (as opposed to new) facilities or measures. This power is designed to avoid

an LTA requiring operators to provide services to a certain standard without keeping its “side

of the partnership bargain” by providing new facilities or taking new measures.

40 113K largely replicates section 119 of the Transport Act 2000 which concerns QP schemes, but

includes specific reference to measures.

113L Variation and revocation of schemes

41 This section specifies how a scheme can be varied or revoked. In order to revoke the scheme,

the authority needs to seek consent from operators who are currently providing services to the

standards specified in the scheme. In order to vary the scheme, the authority will either need

to follow the process of making a scheme (if the variation requires making of a traffic

regulation order) or the process outlined in the regulation made under section 113N (if it does

not).

42 113L largely replicates section 120 of the Transport Act 2000 regarding QP schemes.

Subsection (2) also clarifies that consent is only required from operators that are currently

providing services under the scheme.

113M Variation: supplementary

43 113M determines whether a traffic regulation authority is an Enhanced Partnership authority

when a scheme is varied.

44 This new section largely replicates the equivalent QP scheme provisions at section 121 of the

Transport Act 2000 but also includes specific references to ‘measures’ in subsections (3), (4),

(5) and (8).

113N Regulations about schemes

45 This section is self‐explanatory. It largely replicates section 122 of the Transport Act 2000 which concerns QP schemes.

113O Guidance about schemes

46 This provision is self‐explanatory. It largely replicates section 123 of the Transport Act 2000 which relates to QP schemes.

Clause 2: Further amendments [j290]


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47 Schedule 1 contains further amendments in relation to AQP schemes.

Clause 3: Transitional provisions [j280]

48 This clause makes provision for an existing QP scheme made under section 114 of the

Transport Act 2000 to be treated as if it were an AQP scheme made under the new section

113C inserted into that Act by this Bill if it relates only to LTAs in England at, or after, the date

on which the new AQP scheme provisions are commenced.

Franchising schemes

Clause 4: Franchising schemes [j101]

49 Clause 4 inserts new sections 123A to 123X into Part 2 of the Transport Act 2000. These contain provisions relating to bus franchising schemes in England.

50 A franchising scheme is one in which the LTA (or LTAs) identifies which local bus services

should be provided in an area and what additional facilities should be provided, rather than

bus operators determining the vast majority of services on a commercial basis. The LTA then

enters into ‘local service contracts’ with bus operators to provide the bus services it has

specified.

51 These new sections of the Transport Act set out which LTAs can make a bus franchising

scheme, the process they must follow before establishing a scheme and how bus services are

provided once a system of franchising is established.

123A Franchising schemes

52 Section 123A establishes the core principles of a franchising scheme.

53 Where a franchising scheme is established, local bus services should only be provided in

accordance with the terms of the local service contracts awarded by the LTA (the “franchising

authority”) or where:

the operator has been granted a ‘service permit’ by the authority to run an

additional bus service (section 123P);

the operator is providing an interim service in the situation where another

operator has failed to provide or ceased to operate a bus service before the end of

the contracted period (123O); or

the operator is running a local bus service of a type that has been excluded from

the franchising scheme (123H(4)).

54 In addition, community transport services operated under a permit granted under section 22

of the Transport Act 2000 are not prohibited from operating in a franchising scheme area.

55 This new section also provides the power for Mayoral Combined Authorities to establish a

franchising scheme, either singly or jointly2. A franchising scheme can be made over the

whole area or combined area of the franchising authority or authorities, or can be made so

2 In the notes on this clause, references to an "authority" should also be taken as referring to "an authority or authorities".


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that it applies to any part of that area.

56 The section then states that an authority may only make a scheme once they have complied

with certain requirements that are set out in the new sections 123B to 123G which this Bill

inserts into the Transport Act 2000. These sections include requirements to prepare and

consult on an assessment of the proposed franchising scheme.

57 Sub‐sections 4(b) to 4(f) enable the Secretary of State to extend the franchising powers to other

local transport authorities in the future, by way of making one or more affirmative

regulations, and, thereafter, if consent is obtained from the Secretary of State.

123B Assessment of proposed scheme

58 This new section requires a franchising authority to prepare an assessment of the franchising

scheme that they propose to operate in their area. The assessment must describe the likely

effects of the scheme and compare it to a range of alternative options.

59 123B also sets out the range of issues that the authority or authorities must consider when

conducting their assessment, including whether:

the proposed scheme would contribute to the implementation of the authority’s

transport policies and wider policies;

the proposed scheme would contribute to the implementation of the policies of

neighbouring authorities;

the authority has the capability and resources to operate the scheme;

the authority can afford to operate the scheme;

the scheme would represent value for money; and

the proposed scheme can be procured successfully.

60 The list of issues that the authority should consider when preparing their assessment is not

exhaustive, and does not prevent the authority from considering any other matters which they

think are pertinent.

61 Sub‐section (5) requires the Secretary of State to issue guidance about the preparation of an assessment of a franchising scheme. The guidance may include more detail about the methods

to be used when assessing a scheme.

123C Consent of the Secretary of State and notice

62 Section 123C sets out the circumstances in which the Secretary of State must give his or her

consent before an authority can prepare an assessment of its proposed franchising scheme

under section 123B. The Secretary of State’s consent will only be needed if effect is given to

one or more of section 123A(4)(b) to (f) by way of affirmative regulations, meaning that

another category of local transport authority, in addition to Mayoral Combined Authorities,

have been granted access to franchising. Mayoral Combined Authorities, or a combination of

Mayoral Combined Authorities acting jointly, do not require consent.

63 The Secretary of State is required to publish a notice of consent, and authorities must also

publish their intention to prepare an assessment under this new section.

123D Audit

64 Section 123D requires the authority to obtain a report from an auditor relating to its


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assessment of its proposed franchising scheme. This aims to ensure that the assessment and

subsequent consultation is based on appropriate material which has been analysed effectively.

The report also has to state whether the auditor considers that the franchising authority has

had due regard to any guidance issued by the Secretary of State.

65 The requirements as to who may be an auditor for these purposes reflect the position for the

local auditor of the accounts of a local authority.

123E Consultation

66 Section 123E sets out the consultation exercise that an authority must conduct before it can

introduce its proposed franchising scheme. The authority should only consult on its proposed

franchising scheme once it has obtained a report from its auditor.

67 This new section lists the documents that must be published by the authority as part of its

consultation on a proposed franchising scheme. They must also give notice to the public of the

proposed scheme. The notice should describe the proposed franchising scheme and state

where copies of the documents published as part of the consultation can be inspected.

68 123E(4) sets out who the franchising authority must consult. This includes local bus operators

in the proposed scheme area, relevant LTAs and passenger representatives.

69 The authority or authorities may modify the proposed scheme following the consultation, to

take account of any proposed changes.

123F Consultation document

70 Section 123F explains what the authority must include in its consultation document for a

proposed franchising scheme.

71 Amongst other things, the authority must include descriptions of the scheme area, the scope

of the bus services to be provided, any proposed exclusions from the scheme and a summary

of the assessment of the scheme prepared under section 123B.

123G Response to consultation

72 Section 123G requires the franchising authority to publish a report containing a response to the consultation and a decision as to whether or not to operate the proposed franchising

scheme.

73 If the authority or authorities decide to operate a franchising scheme in their area, the report

must set out how, when conducting the procurement process for the provision of local bus

services, the authority, or authorities will enable small and medium‐sized bus operators to be

involved in the process. This aims to ensure that there is clear local accountability for, and

transparency about, how smaller operators will be able to compete effectively to run bus

services under a franchising scheme.

74 The section also requires that, in the case of a Mayoral Combined Authority, the decision as to

whether or not to implement the franchising scheme rests with the Mayor, and is exercisable

only by the Mayor.

123H Making and publication of the scheme

75 Section 123H sets out what a franchising scheme should contain and how it should be made

and published.

76 The authority must publish their franchising scheme at the same time as they publish their

response to the consultation. The scheme sets out how the franchising of bus services will be

operated in the local area.


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77 The scheme must specify:

the area(s) it covers;

the local services that will be provided under contracts;

when the authority will first enter into contracts with operators to provide

franchised bus services; and

the transition time that is planned before the first franchised services under those

contracts are provided.

78 The franchising scheme can also specify certain local bus services, or classes of services that

are excluded from the franchising scheme. Such services will not be impacted by the

franchising scheme and will be able to continue to operate as normal.

79 Existing partnership arrangements may be in place in an area in which franchising is

proposed. The subsection allows for a franchising scheme to make provision varying or

revoking any existing Advanced Quality Partnership and Enhanced Partnerships Schemes

(“partnership schemes”) relating only to the area, or areas, of the franchising scheme. This will

ensure that partnership schemes and franchising scheme are not run in the same area

concurrently. If an existing partnership scheme also relates to areas that are outside of the

franchising scheme then the franchising scheme can only vary the partnership scheme as it

relates to the franchised area.

80 If an existing partnership scheme is varied, so that it no longer relates to the area or areas of

the proposed franchising scheme, then a local transport authority who made the partnership

scheme (but is not the franchising authority concerned) may vary the partnership scheme.

They may also revoke it if all bus operators providing a service to a standard specified under

the partnership scheme consent to it being revoked.

123I Postponement of local service contracts

81 Section 123I allows the franchising authority to postpone the date on which local services

contracts for the franchising scheme area or sub‐area may be entered into. Before making the

postponement, the authority should consult, if possible, people who are likely to be affected

by the decision. They must also publish their decision to postpone all or part of the scheme,

explaining the reasons why they decided to do so.

123J Effect of local service contracts: registration requirements and provision of services

82 Section 123J contains new provisions to explain how franchising schemes impact on the

registration requirements for local bus services (as set out in section 6 to 9 of the Transport Act

1985).

83 Bus services operating wholly within the area of a franchising scheme will not need to be

registered with a Traffic Commissioner unless the local service or class of service is excluded

(see paragraph 84 below). This is because sections 6 to 9 of the Transport Act 1985 will not

have effect in relation to the area to which the franchising scheme relates once the effective

time (which is provided for in the new section 123K) has expired.

84 Bus services with a stopping point in the franchising area may only be provided under a local

service contract with the authority; if they have a service permit issued by the authority

(provided for under the new section 123P); or if they are an interim service (as set out in the

new section 123O).

85 Where a local service, or class of service, is excluded from the franchising scheme, then the


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operator of that service must register it with the Traffic Commissioners in accordance with

section 6 to 9 of the Transport Act 1985. Community transport services operating under a

permit granted under section 22 of the Transport Act 1985 are excluded from all franchising

schemes by subsection (5)(b).3

86 The new section also requires an authority to inform a Traffic Commissioner if an operator is

running services in contravention of the prohibition at subsection (3) and has failed to take all

reasonable precautions and to exercise all due diligence to avoid doing so. The Traffic

Commissioner is given powers to then take action against the operator concerned by adding

to Traffic Commissioners’ existing powers by way of amending the Transport Act 1985 and

the Transport Act 2000 (see Schedule 2).

123K Local service contracts

87 Section 123K contains new provisions setting out what local service contracts are and the

process that must be followed when entering into them.

88 A franchising authority may only enter into local service contracts with bus operators who

hold either a Public Service Vehicle operator’s licence or a community bus permit. It also

explains that authorities cannot enter into local service contracts with operators who have

conditions attached to their licence prohibiting the operator from providing services of the

description in the contract.

89 The section also requires that services cannot start operating under a local service contract until the contract’s effective time has expired. This is to give operators in the area time to

transition and prepare for the change in operating model. The effective time in relation to a

local service contract is either 6 months, or a longer period specified by the authority in its

franchising scheme.

90 An authority has to inform a Traffic Commissioner when they enter into local service

contracts under a franchising scheme. This is designed to notify a Traffic Commissioner of the

date on which services will no longer have to be registered with them in that area.

123L Exceptions to section 123K

91 Section 123L provides that the effective time period need not apply where the authority needs

to take urgent action. This could occur if, for example, an operator withdraws from a contract

or goes out of business or if an unexpected and urgent need for a bus service is identified.

123M Variation of scheme

92 Section 123M sets out the process that the authority must follow before varying its franchising

scheme. The authority must publish a notice of its decision indicating when the variations to

the scheme are to have effect, which must be at least 6 months from the point at which the

decision to vary is made.

93 To vary a scheme an authority must follow much of the same procedure as it did when it

made the franchising scheme. But unless the variation extends the geographical scope of the

3 Community transport operators running services under a section 19 permit are not affected by the Bill, as they are not running a local service.


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scheme it does not have to:

request consent from the Secretary of State (if relevant);

prepare an assessment of the scheme;

have its assessment audited and receive an auditor’s report.

94 If the authority is a Mayoral Combined Authority, the decision to vary the scheme must be

made by the Mayor.

123N Revocation of scheme

95 Section 123N sets out that an authority may revoke a franchising scheme if they think that:

there would be better local services in the area to which the franchising scheme

relates if the scheme were not operating;

continuing to operate the scheme would cause financial difficulties for the

authority; or

the burdens of the scheme are likely to outweigh its benefits.

96 Before revoking the franchising scheme the authority must publish a notice of their decision

and give notice of their decision to a Traffic Commissioner within 14 days of their decision.

The notice must set out the date on which the revocation is to have effect, and the date of

revocation must fall after a period of 6 months beginning with the date on which the notice is

published.

97 If the authority is a Mayoral Combined Authority, the decision to revoke the scheme must be

made by the Mayor.

123O Interim services and replacement services

98 Section 123O provides for the situation where an authority has entered into a local service

contract with an operator for a specified period but the operator either fails to provide the

specified service or ceases to provide the service before the end of the specified period. In this

circumstance, the authority may provide the bus services themselves in place of the original

service. Such a service is called an ‘interim service’. An authority is able to provide interim

services in spite of any prohibition, restriction or limitation on the power of the authority to

provide local services contained in any other Act.

99 This new subsection also limits the length of time during which an authority can provide an

interim service to 6 months. However, if the authority procures a replacement service, the

authority may continue to provide its interim service until that replacement service comes

into operation.

100 The transition notice period does not apply to replacement services, which means that they

can be provided immediately once the local service contract has been entered into.

123P Service permits

101 Section 123P provides for service permits to allow commercial services to operate in a

franchised area. They are most likely to be used for cross‐boundary services that run through,

into or out of an area covered by a franchising scheme, but an operator can also apply for

them to provide services which a franchised network does not cover. A service permit is

needed if the service concerned is not: specified by the franchising authority under a local

service contract; exempted from the scheme by the new section 123J(5) of the Act; or an


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interim service under the new section 123O.

123Q Application for service permit

102 Section 123Q allows the franchising authority or authorities to determine the application

process for a service permit including the information that an applicant has to provide.

103 The authority may also charge a fee under subsection (3) for dealing with the permit

application on a full cost recovery basis, with the maximum fee level set by the Secretary of

State in regulations.

104 Authorities must accept applications for service permits where the application has

demonstrated that the proposed service would benefit passengers and not adversely impact

on any services operated under local service contracts. If the authority or authorities do not

grant the service permit, they must inform the applicant of the reasons why within 10 days.

123R Conditions

105 Section 123R provides that an authority or authorities may attach conditions to service

permits. The types of conditions that can be attached will be set out in regulations made by

the Secretary of State.

106 The authority has to set out in a notice the types of conditions ‐ from the options available in the regulations ‐ they intend to attach to service permits, together with the circumstances in

which they intend to attach those conditions. It will be possible to set out different types of

conditions for different types of services or circumstances. Before issuing the notice, the

authority must consult local bus operators in the area. If the authority decides to withdraw the

notice they must specify the date on which it will be withdrawn and clarify whether it will be

replaced by another notice.

107 Authorities may retrospectively attach conditions to permits where these have been set out in

a notice.

108 If an authority grants a permit with conditions attached to it, or attaches conditions to a

permit which has previously been granted, they must give notice of their reason for attaching

the conditions to the applicant within 14 days.

123S Revocation and suspension

109 Section 123S sets out that an authority or authorities may revoke or suspend a service permit

granted by them if:

the criteria for granting the permit are no longer satisfied;

the holder of the permit has breached a condition attached to the permit; or

the public would be endangered if the service in question continued to operate.

110 The Secretary of State may make regulations setting out the period of notice that needs to

expire before a revocation or suspension of a permit takes effect.

123T Appeals

111 Section 123T sets out the appeals process when: a permit application is not accepted by the

authority, conditions are attached to such a permit, and where a service permit is suspended

or revoked.

112 An appeal is to be made to a Traffic Commissioner, and the appeal must be brought within

the time period specified by the Secretary of State in regulations. The Traffic Commissioner


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may either uphold, quash or substitute the decision of an authority or authorities.

113 Appeals against Traffic Commissioner determinations may be made to the Upper Tribunal.

123U Regulations about schemes

114 This section is self‐explanatory.

123V Transitional provisions about schemes

115 Section 123V provides that the Secretary of State may make regulations in relation to

transitional provisions relating to the coming into operation, continuation and ending of

franchising schemes.

116 It also amends section 6 of the Transport Act 1985. This allows for regulations to be made to

allow franchising authorities to extend the notice period for varying or cancelling local bus

services. The authority must specify the revised time period for the franchising scheme area in

a notice.

117 The regulations may set out certain requirements in relation to the notice that an authority can

issue, including requirements about:

when the authority should publish the notice;

the publication of the notice;

alerting a Traffic Commissioner; and

the extended time period specified, which must not exceed 112 days.

123W Guidance about schemes


123X Local service contracts: application of TUPE

119 Section 123X provides for Transfer of Undertakings (Protection of Employment) Regulations

2006 (“the TUPE Regulations”) to apply when staff are transferred as a result of local service

contracts, and for those staff to be provided with certain pension protection.

120 Where a local service contract comes into force requiring incumbent bus operator to cease

providing services and, at the same time, a new bus operator begins to provide bus services in

the same area or sub‐area then the situation should be regarded as a “relevant transfer” for

the purposes of the TUPE Regulations.

121 A “relevant transfer” also occurs if the provider of the local services stops providing them before the new local service contract commences, and so the authority agrees with a new

operator to provide those services earlier than they otherwise would have done.

122 Any transfer of staff as a result of franchising that is regarded as a relevant transfer for the purposes of TUPE is also subject to sections 257 and 258 of the Pensions Act 2004.

123 The Secretary of State may make regulations supplementing the provisions in this section. The

provisions that may be made by regulations include:

defining the meaning of “principally connected” with the provision of local

services;

determining any particular “organised groupings” of employees and the new

operator who is to be the new employer;


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requiring current operators to provide information relating to employees;

requiring the franchising authority to provide information;

pension protection for transferring employees; and

securing that pension protections are enforceable by the employee.

124 The Secretary of State must exercise powers to make regulations securing pension protections

for all transferring employees. These pension rights must be the same as those under the

employees’ original employment contracts or should count as being broadly comparable, the

same or better than those original pension rights.

125 The definition of transferring original employees is an employee who immediately before the

date of transfer was providing local services under a contract of employment for an original

operator at the “relevant date” for the transfer.

Clause 5: Power to obtain information about local services [j102]

126 Section 5 inserts a new section 143A after section 143 of the Transport Act 2000 concerning the provision of information in relation to franchising schemes.

143A Power to obtain information about local services: franchising schemes

127 Section 143A provides a franchising authority (or authorities)4 with the ability to require

operators of local bus services to provide it with relevant information for its assessment of the

proposed franchising scheme, or when the authority is considering varying the franchising

scheme.

128 What constitutes relevant information is set out in subsection (3) which also provides the

Secretary of State with the power to specify further types of information in regulations.

Operators can only be required to supply information for the period up to five years before

the date on which the information is requested.

129 Bus operators in the area will be required to provide information in any form in which the

authority deems it reasonable to be provided.

130 If it appears to an authority that an operator has failed to take all reasonable steps to comply

with a request for information then the authority must inform a Traffic Commissioner.

Schedule 2 of the Bill provides Traffic Commissioners with power to take enforcement action

against the operator concerned.

131 The authority may decide not to publish an assessment, consultation document or auditor’s

report that includes information that the authority deems should not be disclosed in

accordance with the Freedom of Information Act 2000 provisions or Environmental

Information Regulations 2004.


132 This clause is self‐explanatory.

4 References in the notes on this clause to "an authority" should be taken to refer to "an authority or authorities".


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Advanced ticketing schemes

Clause 7: Advanced ticketing schemes [j601]

133 This clause inserts new sections 134C to 134G into Part 2 of the Transport Act 2000 to strengthen the powers that LTAs (or LTAs acting together) in England have to make joint and

through ticketing schemes.

134 Such schemes enable passengers to purchase a ticket, or tickets, in a single transaction that

may be accepted by different operators, including rail and tram operators, across the scheme

area for more than one journey. For example, this may be through a ‘travelcard’ type product

entitling the holder to use transport services within the scheme area over a set period of time.

135 The new sections largely replicate sections 135 to 138 of the Transport Act 2000 with additions

designed to: achieve a more joined‐up approach to ticketing issues across LTA boundaries;

and clarify the scope of the powers to accommodate a range of technological possibilities.

134C Advanced ticketing schemes

136 The new section 134C enables an LTA whose area is in England, or one or more such LTAs

together5, to establish an advanced ticketing scheme, if such a scheme would be in the public

interest and would contribute to the implementation of local transport plans. An LTA is

required to have regard to the desirability of making such schemes jointly with neighboring

authorities to facilitate cross‐boundary journeys and to ensure, in establishing and managing

such schemes, that they co‐operate with other LTAs in England.

137 Sub‐sections (7) and (10) are additions to the current provisions under section 135 of the Act. Sub‐section (7) clarifies the ability of the scheme to contain certain details. Its main purpose is

to ensure that an LTA could specify in the scheme particular technological options ‐ such as

smart ticketing or contactless payment.

138 Sub‐section (10) aims to ensure that an LTA considers the needs of passengers to travel across

LTA boundaries by considering ticketing arrangements in other areas while it is preparing the

scheme ‐ not just after it is in place, as under the current section 135 provisions.

134D Notice and consultation requirements

139 134D obliges an LTA to comply with notice requirements and consult: operators who will be

affected; bus user representatives; the Competition and Market Authority; and a Traffic

Commissioner before making a ticketing scheme.

134E Making a scheme

140 This new section sets out how the scheme will be made. An LTA has to give 14 days’ notice to:

a Traffic Commissioner; affected operators; and, if it includes rail or tram journeys, the

Secretary of State.

141 Rail and tram services may only be included in such schemes by agreement with those

operators.

5 References in these notes on Clause 7 to "an LTA" should be taken to refer to "an LTA or LTAs".


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142 A ticketing scheme cannot come into operation earlier than three months after it is made.

134F Effect of scheme

143 This new section makes the scheme’s provisions binding on local bus operators. Once a

ticketing scheme is in operation, operators of bus services in the scheme area must make and

implement the necessary arrangements required by the scheme.

134G Guidance




Enhanced partnership plans and schemes 146 These clauses create a new type of partnership arrangement which is available only to LTAs

in England and known as an Enhanced Partnership (EP). An EP is intended to be easier to

apply to a wide geographical area than a Quality Partnership (QP) or Advanced Quality

Partnership (AQP) scheme. Also, unlike QP and AQP schemes, an EP scheme does not

include the concept of admissible objections from specific operators which need to be resolved

individually. Instead, operators can object to the scheme at several key stages. If a sufficient

number of operators do so, The LTA would then have the opportunity to revise its proposals

for reconsideration.

147 Although the powers to make EP schemes are vested in LTAs, the provisions include

requirements for LTAs to invite operators to participate in the work of the partnership and the

Government anticipates that in practice arrangements will be developed collaboratively

between operators and LTAs.

Clause 9: Enhanced partnership plans and schemes [j230]

148 This clause inserts new sections 138A to 138S into Part 2 of the Transport Act 2000 to establish a new type of partnership ‐ known as an Enhanced Partnership ‐ for LTAs in England.

149 These new EP provisions enable LTAs, with the participation of local bus operators, to specify

a package of: facilities and/or measures provided or taken by an LTA; and requirements to

improve bus services in the EP area.

138A Enhanced partnership plans and schemes

150 This new section gives LTAs ‐ acting jointly or collectively with other authorities6 ‐ the power

to make an ‘enhanced partnership plan’ and one or more ‘enhanced partnership schemes’. It

describes key features of both the plan, in sub‐sections (3) and (4), and the scheme, in sub‐

sections (5), (6) and (7).

151 The EP plan is the higher level of the two types of document. It analyses the local bus market,

identifies how bus services contribute to its wider objectives, and sets out how bus services in

the area it covers should be improved.

6 References in the notes on this Clause 9 to "an LTA" should be taken as referring to "an LTA or LTAs".


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152 The EP scheme is more detailed and practical, identifying specific actions that the LTA and

bus operators will take to improve bus services in some or all of the partnership area. It can

set out facilities that the LTA will provide, measures that the LTA will take and requirements

bus operators in the scheme area will need to comply with. An LTA can create multiple

schemes for an area covered by one plan.

153 An EP plan and scheme must also set out how they will be reviewed. The scheme may also

include provisions about its variation and revocation (see section 138E).

154 138A stipulates that before making an EP plan or scheme the LTA must be satisfied that the

scheme contributes to the implementation of the LTA’s local transport policies, and that it

will:

bring benefits to passengers by improving services; and/or

reduce or limit noise or air pollution.

155 This section also places a duty on LTAs to co‐operate with each other and consider whether

an EP should be made jointly with another LTA.

156 Before an LTA can make a scheme, it has to comply with requirements in the new sections

138F (preparation, notice and consultation) and 138G (1) to (4) (making of plan and scheme)

that deal, for example, with process for ensuring that there is an appropriate level of support

for the scheme from bus operators. In this paragraph, and through the explanatory material

on EP, “support” is taken to mean that no more than a “sufficient number” of operators object

to the plan and/or the scheme. “Sufficient numberʺ means such number of persons as together

provide certain proportion of qualifying local services (by number of operators and/or market

share). These percentages will be defined in secondary legislation.

138B Further parties to a scheme

157 Providing facilities or taking measures contained in an EP scheme may require a traffic

regulation order (i.e. temporary or permanent restrictions on traffic within its area). If the road

with which such an order is concerned is the responsibility of another local authority or the

Secretary of State then this new section requires that they are also a party to the EP scheme.

138C Requirements in respect of local services

158 An EP scheme will set out requirements that can be placed on bus operators to contribute to

the objectives outlined in the EP plan. This new section prescribes the scope of these

requirements.

159 The Bill (at clause 11) provides for two types of such requirement – “route requirements” that

relate to the frequency of timing of bus services; and “operation requirements” which include

all other requirements that a scheme can impose.

160 The ‘operation requirements’ may include:

vehicle requirement ‐ such as emission standards, “talking buses”, common or

route‐specific branding;

common ticketing arrangements ‐ including the types of single operator tickets to

be provided, branding of tickets, common fare zones across operators, common

length of period tickets, methods of payment that must be accepted (such as

contactless or smart card); and common terms and conditions ‐ such as the times

and circumstances in which concessions are valid;


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the prices of a multi‐operator tickets;

the way in which information is provided to the public; and

common dates for changing timetables.

161 An EP scheme can include requirements from one or both types of category on a “mix and

match” basis. Whatever combination of these requirements that is considered appropriate

locally can be included. More than one EP scheme can apply to the same services or

geographical area.

162 There are some requirements that cannot be included in an enhanced partnership scheme ‐

such as the prices of single‐operator tickets or requirements compelling operators to run

services that they do not wish to operate.

163 Scheme requirements cannot be imposed on bus operators by the LTA, but effectively have to

have the support of sufficient operators in the scheme area. This is provided for in the new

section 138F(5).

164 Community transport operators (operating under a section 22 permit) are exempted from the

requirements imposed by the scheme under sub‐section (11).7

138D Facilities and measures

165 An LTA may commit through an EP scheme to provide facilities or measures ‐ as they could

do under an AQP scheme. This section provides that these facilities may not be the same as

facilities specified by section 139 and 140 of the Transport Act 2000 that require LTAs to

consider what local bus information should be made available to the public and the way in

which it should be made available.

138E Conditions relating to variation or revocation

166 The EP scheme may specify cases in which, and how, it may be varied or revoked. This new

section gives the LTA and the operators the flexibility to agree, in the scheme mechanism for

variation and revocation of the plan/scheme if they feel that such mechanism would be more

suitable for local market conditions than the mechanism outlined later in the Bill. Such

arrangements could, for example:

change the way operators can object to the scheme from that provided for in

primary and secondary legislation to better reflect the nature of the local bus

market;

recognise different types of variation which would require different levels of

operator support or objection to proceed or otherwise; or

allow minor changes to the scheme to be made without operators having an

opportunity to object.



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138F Preparation, notice and consultation

167 138F prescribes the process by which the LTA(s) may make enhanced partnership plans and

schemes. An EP plan must be made with an EP scheme, but if a plan and at least one scheme

have already been adopted additional schemes can be added at a later stage.

168 This new clause deals with the process between the plan and/or scheme(s) being initiated and

consultation (the remainder of the process is described in 138G). The steps are as follows:

an LTA must give notice of its intention to develop a plan and/or scheme(s);

it must invite operators of qualifying services (which will be defined in

regulations) to participate in the preparation of the proposed plan and/or

scheme(s);

the LTA then prepares the plan and/or scheme(s). While the Bill places the

responsibility to produce the enhanced partnership plan and scheme(s) on the

LTA, in practice, the Government would expect the LTA and operators to work

together to produce the plan and the scheme. The Government envisages issuing

guidance (under the new section 138P on the Transport Act 2000) to this effect;

the LTA notifies all qualifying bus operators of the plan and/or scheme(s). The

notice must contain the full details of the plan and/or scheme(s) and state how

long operators have to disagree with them (which must be at least 28 days). The

LTA can only proceed further in this process if no more than a “sufficient

number” of operators objected to the plan and/or the scheme(s). The sufficient

number may be based on number of operators and/or their market or mileage

share. What constitutes a “qualifying local service” and a “sufficient number”

will be detailed in secondary legislation. The plan and/or scheme(s) are dealt

with as a package. Sufficient support from operators needs to be required for

each plan and/or scheme which is being put forward, otherwise none can

proceed;

after the LTA has obtained appropriate support from the operators it must

undertake a consultation. Statutory consultees include: operators of local services

in the area; bus passenger representatives; relevant local authorities; a Traffic

Commissioner; and the Competition and Markets Authority.

138G Making of plans and schemes

169 138G prescribes the next stages in the process by which the LTA may make an EP plan and/or

scheme(s). It deals with the process after consultation until the plan and/or scheme(s)’s

adoption (the remainder of the process is described in 138H). The steps are as follows:

following the consultation, the LTA(s) can decide to proceed with the plan and/or

scheme(s) as originally proposed or with modifications;

before the LTA can adopt (make) the plan and/or scheme(s), the LTA must again

seek the support of operators of qualifying local bus services, who are able to

object as set out above in relation to the new section 138F of the Transport Act

2000;

no later than 14 days after the plan and/or scheme(s) has been made, the LTA


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must give notice to operators and a Traffic Commissioner. Such notice must

contain full details of the plan and/or the scheme(s) and whether it has been

modified following consultation.

138H Content of scheme

170 This section specifies what a scheme must contain including:

what requirements it imposed on operators;

any facilities provided or measures taken by the LTA(s);

provisions about variation and revocation of the scheme and its duration; and

the date from which different requirements come into effect and the date from

which any facilities are to be provided and measures taken.

171 A scheme can also specify services that are excluded from it. For instance, the scheme could

exempt all services that only have one stopping point in the scheme area or services that do

not run further than a certain distance into the scheme’s area from its boundary. Community

transport services operating under permits granted under section 22 of the 1985 Transport Act

are excluded automatically under the new section 138C(11) of the Transport Act 2000 inserted

by this Bill.8

138I Postponement of scheme or part of scheme

172 There may be circumstances where the LTA needs to postpone some elements of the scheme.

For example, the infrastructure it is required to provide is not ready or the operators are

struggling to meet a requirement to introduce smart ticketing because the IT is taking longer

than expected to set up. This new section gives the LTA the power to postpone the scheme, or

part of the scheme, by no more than 12 months. It must consult relevant operators to postpone

the scheme but does not require their consent. After making the decision to postpone the

scheme, the LTA must give notice to local operators and a Traffic Commissioner.

138J Effect of plans and schemes

173 If the scheme requires the LTA to provide facilities or take measures, this section includes

provisions about how and when the LTA’s obligations are to be fulfilled. If the plan contains a

provision of review, this section places an obligation on the LTA to carry it out in the manner

specified in the plan and complete by the date specified in the plan. The section also states

that operators must comply with the requirements contained in the scheme.

138K Variation

174 This section gives the LTA the power to vary the plan or scheme(s), provided it complies with

the procedure in the new sections 138L and 138M. This provision is designed to enable plans

or schemes to be varied if they are no longer responding to the local market conditions or

benefiting passengers.



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175 When varying the plan or scheme(s), the LTA must be satisfied that the varied scheme(s)

contributes to the policies outlined in the plan and to local transport policies. It must also be

satisfied that it brings benefits to passengers and reduces or limits traffic congestion, noise or

air pollution.

176 Nothing in this section prevents the scheme being varied in accordance with provisions

outlined in the scheme (see section 138E).

138L Variation: preparation, notice and consultation

177 New sections 138L and 138M set out the process by which an EP plan or scheme is varied

(alternative variation mechanism can be included in the scheme, see section 138E). The LTA

will have to draw up the variation (with the participation of the operators) and seek an

appropriate level of support for the change from operators. Before the LTA can proceed with

the variation, it must then consult on it. The LTA is able to decide on what is an appropriate

consultation for any given proposed amendments, as different types of amendment will

require different types of consultation. The only statutory consultee is the Competition and

Markets Authority.

138M Variation: making a variation

178 This new section deals with the process from consultation to the making of a variation to an

EP plan and/or scheme(s).

179 The default position is that before making the variation, the LTA must again seek the support

of the operators. It can do so by giving notice to all operators of qualifying bus services, which

must: contain the full details of the plan and scheme, state whether it has been modified

following consultation, and state how long operators have to disagree with the variation. The

LTA can make the plan and the scheme unless a sufficient number of the operators of

qualifying local services disagreed with the proposed plan and/or scheme(s).

180 Once a decision to vary the plan and/ or scheme(s) has been taken, the LTA must give notice

of the change.

181 This section provides that further detail of how variations can be made in an EP plan or

scheme can be made in secondary legislation. The Secretary of State may specify by regulation

what constitutes ‐ in the default scenario ‐ a sufficient number of operators for these purposes,

the description of a qualifying local service, as well as specify the minimum period that

operators will have to object to the variation.

138N Variation: supplementary

182 138N determines whether a traffic regulation authority is an Enhanced Partnership authority

when a scheme is varied. It largely reflects the terms of the existing sections 121(3) to (8) of the

Transport Act 2000 as they apply to QP schemes.

138O Revocation

183 This section provides that the LTA may revoke: (i) the EP plan and all of the associated

schemes; or (ii) an EP scheme or schemes (provided that one or more schemes remain in

place). The latter ensures that there is always both a plan and a scheme in place. A scheme can

also be revoked by an alternative mechanism, when such mechanism is included in the

relevant scheme, see section 138E.

184 Before the LTA can make the revocation it must first consult at least the operators of

qualifying local services and the Competition and Markets Authority.

185 The LTA must give notice of its intention to all operators of qualifying bus services, which


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must include:

a date on which the plan and scheme is to be revoked;

the LTA’s reasons for the proposed revocation; and

any arrangements for operators to disagree.

186 The default position is that before the LTA can revoke the scheme, it will have to give

operators of qualifying local services an opportunity to object. The LTA cannot make the

revocation if a sufficient number of the operators of qualifying local services disagree with the

proposed plan and scheme.

187 Notice must be given after the decision has been taken. The date of revocation cannot be

earlier than 14 days after notice has been given.

188 Further details of how revocation can be made will be detailed in secondary legislation. The

Secretary of State may specify by regulation what constitutes ‐ in the default scenario ‐ a

sufficient number of operators for these purposes, the description of a qualifying local service,

as well as specify the minimum period that operators will have to object to the revocation.

138P Regulations about plans and schemes

189 This new section is self‐explanatory.

138Q Transitional provision about schemes

190 This section gives the Secretary of State power to make by regulation provisions about

transitional arrangements including concerning the making, coming into operation, variation

and revocation of EP plans and schemes. These may particularly include provisions

concerning the procurement of subsidised bus services by an LTA and the implications for the

registration of local bus services in an EP area.

138R Guidance about plans and schemes


138S Application of TUPE

192 There may be some limited circumstances, provided for in clause 12 of this Bill and set out in

sub‐sections (1) and (2) of this new section, in which an EP scheme could lead to a change in

the operator of a local bus services. Section 138S provides for Transfer of Undertakings

(Protection of Employment) Regulations 2006 (“the TUPE Regulations”) to apply in these

circumstances when staff are transferred as a result of an EP scheme and for those staff to be

provided with certain pension protection.

193 The practical effect of these provisions is the same as set out in these notes in relation to the

new section 123X of the Transport Act 2000 inserted by this Bill.

Clause 10: Information about local services [j232]

194 Clause 10 amends Part 2 of the Transport Act 2000 by inserting a new section 143B to provide

LTAs in England with the ability to obtain information from bus operators to assist in

preparing, reviewing, varying or revoking an EP plan/scheme. It also amends section 155 of

the Transport Act 1985 in relation to sanctions imposed by a Traffic Commissioner.

143B Power to obtain information about local services: enhanced partnership schemes

195 When preparing an enhanced partnership plan and scheme, an LTA or LTAs can require

operators to provide relevant information for the purposes of making, reviewing, varying or


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revoking the plan or the scheme. Relevant information includes information relating to local

services or passengers or any other information described in regulation by the Secretary of

State.

196 The operator will need to provide the information in a specified format and if an operator fails

to take all reasonable steps to provide the information, the LTA(s) must inform the Traffic

Commissioner.

197 If the Traffic Commissioner is satisfied that the operator failed to take all reasonable steps to

provide the relevant information, it can take action under section 155 of the Transport Act

1985. Such action can include the payment of a penalty.

198 The information provided under this section must not be disclosed if it could be withheld

under the exemptions in the Freedom of Information Act 2000 relating to personal

information; information provided in confidence; legal professional privilege; and/or

commercial interests.

Clause 11: Registration of local services [j231aa]

199 This clause amends section 6 of the Transport Act 1985 to insert provisions to enforce

requirements in EP schemes through the bus registration system. This clause will apply to

England only.

6D Applications for registration where an enhanced partnership scheme is in operation

200 If the person operating the service is considered to be unlikely to comply with an operation

requirement then the registration must be refused. This is provided for in sub‐section (2).

201 Where ‐ as a result of an EP scheme ‐ the local authority has awarded a contract for the

provision of services on a particular route, the subsection (3) states that these registrations are

to be treated in accordance with regulations. This situation is provided for in clause 12.

202 While this clause refers to the Traffic Commissioner as the registration authority, this Bill (in

clause 14) provides for the functions of a Traffic Commissioner in relation to bus registration

to be exercise by an LTA in certain circumstances. Therefore, if such functions are delegated,

applications for registrations will be dealt with by the relevant LTA.

Clause 12: Cancellation of registration [j231bb]

203 This clause inserts new sub‐sections (7A) and (7B) into the Transport Act 1985 so that cancellation of registered services under an EP scheme is possible. It also inserts section 6E.

6E Cancellation and control of registration where enhanced partnership scheme is in

operation

204 These provisions allow the Traffic Commissioner (or the LTA, if registration functions have

been delegated under clause 14) to cancel registration of services that are not complying with

the relevant operation or route requirements.

205 The section also gives the Secretary of State the power to specify in regulation: what services

may be registered in place of services whose registration has been cancelled and for how long;

and circumstances under which a cancellation of a registration can be revoked or postponed.

206 The provisions in relation to route requirements are designed to ensure that these

requirements can be met where there may be more registrations for a particular route than are

allowed by the relevant scheme. It would not be legal to reject registration solely on the basis

that the maximum frequency allowed on a given route under an EP scheme had been reached.

Instead, the LTA(s) would ask operators to draw up a voluntary, competition‐law compliant


(HL Bill 2)

29

qualifying agreement that states which operator is operating what service within the

parameters set by the scheme. If such a qualifying agreement was not in place by the end of a

set period as prescribed in the regulations, the LTA would have to tender services on the

particular route to avoid illegally granting an “exclusive right”.

207 A tendered service in these circumstances does not have to involve payment or subsidy ‐ the

Government’s intention is that this mechanism allows for the LTA(s) to operate a slot‐

allocation system by way of tender. The Government intends to cover the operation of these

arrangements in the statutory guidance to be issued under the new section 138R of the

Transport Act 2000 inserted by this Bill.

Clause 13: Appeals [j231cc]

208 This clause inserts a new section 6F into the Transport Act 1985 to give a right to bus operators to appeal the decision of the responsible registration authority (which under clause 14 of this

Bill can be a Traffic Commissioner or an LTA) against: a decision to record a requirement,

refusal of registration, or cancellation of registration. If the Traffic Commissioner is the

responsible registration authority, then the appeal is to be made to the Upper Tribunal. If an

LTA is the responsible registration authority, then the appeal is to be made to the Traffic

Commissioner. Further appeal then can be made to the Upper Tribunal (by either the bus

operator or the LTA).

209 This clause will apply to England only.

Clause 14: Traffic commissioner functions [j231dd]

210 This clause inserts new sections 6G to 6I into the Transport Act 1985 to provide for further changes to bus registration arrangements relating to EP schemes. This clause will apply to

England only.

6G Traffic commissioner functions where an enhanced partnership scheme in operation

211 This section details the functions of the Traffic Commissioner where an EP scheme is in place.

It also requires the LTA to notify the Traffic Commissioner whether a new or varied schemes

includes operation and/or route requirements.

212 The Bill enables relevant registration functions to be delegated from a Traffic Commissioner to

an LTA. This has the effect of making the LTA concerned the registration authority. Other

than as provided for in clause 13 the Traffic Commissioner is no longer involved in the

decisions taken by the LTA. Relevant registration functions include application to register and

vary a service and cancellation of a service that operate wholly in the area covered by the

enhanced partnership scheme.

213 If the scheme is made by more than one LTA, the LTAs involved must also notify the Traffic

Commissioner which is the ‘lead’ LTA. This is important, as the Traffic Commissioner can

only delegate the registration function to the ‘lead’ LTA.

214 If the scheme contains a route requirement related only to services running wholly in the EP

scheme area, the relevant registration function must be delegated from the Traffic

Commissioner to the (lead) LTA. If the scheme does not contain such route requirements, the

(lead) LTA may elect to carry out the relevant registration function. The delegation will come

to an end when the relevant scheme ceases to operate.

6H Fees relating to relevant registration functions

215 6H provides that if relevant registration functions are delegated from the Traffic Commissioners to an LTA, the LTA may charge a fee for the exercise of these functions. This

section details the fees that the LTA can charge. These include a fee for application for


(HL Bill 2)

30

registration, variation of registration, cancellation of registration. The fees are to be

determined in accordance with regulations.

6I Record of registration etc.

216 If relevant registration functions are delegated from the Traffic Commissioners to an LTA, this

new section requires that the LTA must keep a record of services that are registered, varied or

cancelled in the area covered by the enhanced partnership scheme. The LTA must supply this

information to the Traffic Commissioner and allow a member of the public to inspect them on

request. Regulation may specify the form and the particulars of the record, as well as the

particulars that are to be supplied to the Traffic Commissioner.


217 Schedule 4 contains minor and consequential amendments in relation to an enhanced

partnership scheme.

Power to make traffic regulation orders

Clause 16: Powers to make traffic regulation orders [j236]

218 This clause includes consequential amendments to the Road Traffic Regulation Act 1984, as a

result of the introduction of the new franchising, Advanced Quality Partnership and

Enhanced Partnership schemes provisions.

Information about English bus services

Clause 17: Power to require provision of information about English bus services

[j301]

141A Power to require provision of information about English bus services

219 This section inserts new section 141A into the Transport Act 2000 to provide open data on all bus services in England, outside London. It does this by providing for regulations under

which new applicants registering bus services, existing operators, franchising authorities and

in some circumstances Traffic Commissioners may be required to provide prescribed

information.

220 These powers enable a single repository of information to be created that could contain all the

information about routes, timetables, fares and tickets for local buses including live

information about bus arrival times. The information so collected would be open to the public

and could be used by software developers to create, for example, information applications for

mobile devices through which passengers could access real‐time bus arrival information.

221 The regulations will set out the detail of the information that will be required including when

and how it is to be provided. This section will only apply to services that run in England

except Greater London. Where an operator fails to comply with the regulations, a Traffic

Commissioner may apply the existing sanctions available under section 155 of the Transport

Act 2000.

Registration of bus services

Clause 18: Variation or cancelation of registration: service information [j302]

222 This section inserts new section 6C into the Transport Act 1985.

6C Variation and cancellation or registration: service information


(HL Bill 2)

31

223 6C makes provision for regulations under which operators of local bus services are required

to provide the LTA with certain information relating to patronage and revenue of the service

when making an application to vary or cancel a bus service. In particular, the regulations will

prescribe how much historical information the bus operator has to provide, when and how

information is to be provided and the role of Traffic Commissioners in ensuring compliance.

Regulations will also provide for the circumstances under which LTAs may disclose such

information to third parties who may be tendering for the services that are being varied or

cancelled.

224 This clause implements a recommendation from the Competition Commission (now the

Competition and Markets Authority).

Clause 19: Rail replacement bus services [j401]

225 This section amends section 6 of the Transport Act 1985 (registration of local services). The

effect is to exempt temporary rail replacement bus services in England from the need for

registration.

226 New subsection 6(1D) of the Transport Act 1985 sets out whether a service is considered to be

a temporary rail replacement bus service in England. New subsection 6(1E) of the Transport

Act 1985 makes provision for circumstances where a temporary rail replacement bus service

operates both inside and outside England.

227 This section also amends section 179 of the Greater London Authority Act 1999 so that a

temporary rail replacement bus service is not considered to be a London local service.

Clause 20: Registration of English local services: fees where functions contracted out

[j701]

228 This section inserts new section 6J into the Transport Act 1985.

6J Contracting out of registration functions: fees

229 Existing legislation already enables the Secretary of State to authorise a person to accept applications to register, vary or cancel a local bus service instead of the Traffic Commissioner.

This clause provides that the authorised person will be able to recover the costs of their

activities in carrying out this function through registration fees payable by operators. The fee

amounts will be set by the Secretary of State in regulations.

Bus companies: authorities in England

Clause 21: Bus companies: limitation of powers of authorities in England [j501]

230 Clause 21 prohibits a relevant local authority from forming a company for the purposes of

providing a local bus service.

231 Existing municipal bus companies are not affected by this clause.

General

Clause 22: Power to make consequential and supplementary provisions etc [jconseq]


Clause 23: Transitional, transitory or saving provisions [jtransit]


Clause 24: Extent [jextent]


(HL Bill 2)

32


Clause 25: Commencement [jcommence]


Clause 26: Short title [jtitle]


Schedules

Schedule 1: Further amendments: advanced quality partnership schemes [j290s]

237 The schedule contains only consequential amendments. It amends the Transport Act 2000 so

that sections 114‐123 on Quality Partnership Schemes apply only to Wales. The Bill inserts

new sections to the Transport Act 2000 (section 113C‐113O) that provide for Quality

Partnership Schemes in England.

238 The schedule also amends the Road Traffic Regulation Act 1984 and the Transport Act 1985,

so that it reflects that (i) England and Wales are now covered by different provisions, and (ii)

‘measures’ are included alongside ‘facilities’ throughout existing legislation.

239 It also amends Schedule 10 of the Transport Act 2000 to include AQP scheme alongside QP

scheme and other statutory schemes that are covered by the competition test contained in Part

1 of Schedule 10.

Schedule 2: Further amendments: franchising schemes [j190s]

240 This section amends section 26 of the Transport Act 1985 and section 155 of the Transport Act

2000 to allow Traffic Commissioners to impose sanctions on bus operators who either:

fail to provide information relating to staff for the purposes of TUPE;

run a services in a franchising area illegally and failed to take reasonable steps to

avoid doing so; or

fail to take all reasonable steps to provide information to a franchising authority

under the new section 143A of the Bill.

241 This will allow Traffic Commissioners to impose certain sanctions and financial penalties on

operators, and attach conditions to the operator’s operating license.

242 The schedule also contains consequential amendments. It amends the Transport Act 2000 so

that sections 124‐134B on Quality Contracts Schemes apply only to Wales. The Bill inserts new

sections into the Transport Act 2000 (section 123A‐123X) that provide for franchising schemes

in England. It will no longer be possible for an English LTA to make a Quality Contracts

Scheme.

Schedule 3: Further amendments: advanced ticketing schemes [j690s]

243 This schedule makes consequential changes to the Transport Act 1985 to enable Traffic

Commissioners to attach a condition to Public Service Vehicle operators licences prohibiting

the operators from using vehicles under the license unless they have made and implemented

the arrangements required under any advanced ticketing scheme.

244 This schedule also amends section 135 of the Transport Act 2000, so that after the provisions

on advanced ticketing schemes are in force, English LTAs may only make ticketing schemes

under section 135 where such a scheme is made joint with one or more LTAs and at least one

of those LTAs is an authority whose area is in Wales. Section 135 provisions on joint and


(HL Bill 2)

33

through ticketing schemes also apply to schemes made by LTAs whose area is in Wales. This

schedule also makes other consequential amendments to the Transport Act 2000.

Schedule 4: Further amendments: enhanced partnership plans and schemes [j235s]

245 The schedule makes consequential amendments to the Transport Act 1985 and the Transport

Act 2000. It for example dis‐applies traffic regulation conditions in an enhanced partnership

area (Transport Act 1985) and includes the enhanced partnership plan and scheme in the

scope of section 162 (interpretation) of the Transport Act 2000.

246 This schedule also amends Part 2 of the Transport Act 2000 (section 153) and Schedule 10 of

Transport Act 2000. This amendment includes enhanced partnership schemes alongside other

statutory bus improvement schemes that have to comply with the competition test contained

in Schedule 10 of the Transport Act 2000.


(HL Bill 2)

34

Commencement 247 The extent, commencement and short title of this Act, together with the powers conferred by

the Bill to make secondary legislation, would come in to force on the day on which it is

passed. Other provisions would come into force two months after Royal Assent.

Financial implications of the Bill 248 The Bus Services Bill is a piece of enabling legislation which in itself does not trigger

immediate financial implications. It will be for LTAs to decide how they wish to use the

devolved powers, and assess the financial impact of their policy choices.

Parliamentary approval for financial costs or for charges imposed

249 The Bill contains a new fee, allowing franchising authorities to charge fees to bus operators for

considering their permit application. It also allows authorities to whom the Traffic

Commissioner registration function is delegated as part of an enhanced partnership to charge

a fee for registering bus services. Finally, the Bill allows any other body to which the Traffic

Commissioner registration function may be delegated in future to charge a fee for registering

bus services. All of these fees have been agreed with HMT and do not constitute “taxes” for

the purpose of needing a ways and means resolution.

Compatibility with the European Convention on Human Rights

250 Lord Ahmad of Wimbledon, Parliamentary Under Secretary of State for Transport, has stated

that in his view the provisions of the Bus Services Bill are compatible with the Convention

rights. A statement of compatibility with Section 19 of the Human Rights Act 1998 will be

provided.

Related documents 251 The following documents are relevant to the Bill and can be read at the stated locations:

Background information on a series of bus reform workshops held in autumn

2015; the presentations that were given; and a summary of the discussions at the

workshops can be found at https://www.gov.uk/government/publications/bus‐

reform‐workshops‐background‐information.


(HL Bill 2)

35

Annex A - Territorial extent and application in the United Kingdom The Bill extends to England and Wales and applies to England only.9

Provision Extends

to E & W

and

applies to

England?

Extends

to E & W

and

applies to

Wales?

Extends

and

applies to

Scotland?

Extends and

applies to

Northern

Ireland?

Would

corresponding

provision be

within the

competence of

the National

Assembly for

Wales?

Would

corresponding

provision be

within the

competence of

the Scottish

Parliament?

Would

corresponding

provision be

within the

competence of

the Northern

Ireland

Assembly?

Legislative

Consent

Motion

needed?

Clause 1

Clause 2

Clause 3

Clause 4

Clause 5

Clause 6

Clause 7

Clause 8

Clause 9

Clause 10

Clause 11

Clause 12

Clause 13

Clause 14

Clause 15

Clause 16

Clause 17

Clause 18

Clause 19

Clause 20

Clause 21

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

Yes

No

Yes

No

Yes

No

No

Yes

No

No

No

No

No

Yes

No

No

No

No

Yes

Yes

No

Yes

No

Yes

No

Yes

No

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

9 References in this Annex to a provision being within the legislative competence of the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly are to the provision being within the legislative competence of the relevant devolved legislature for the purposes of Standing Order No. 83J of the Standing Orders of the House of Commons relating to Public Business.


(HL Bill 2)

36

Provision Extends

to E & W

and

applies to

England?

Extends

to E & W

and

applies to

Wales?

Extends

and

applies to

Scotland?

Extends and

applies to

Northern

Ireland?

Would

corresponding

provision be

within the

competence of

the National

Assembly for

Wales?

Would

corresponding

provision be

within the

competence of

the Scottish

Parliament?

Would

corresponding

provision be

within the

competence of

the Northern

Ireland

Assembly?

Legislative

Consent

Motion

needed?

Clauses 22

- 26

Yes

No

No

No

No

No

No

No

Minor or consequential effects10 The following provisions that apply to England have effects outside England, all of which are, in the

view of the Government of the United Kingdom, minor or consequential:

Clause 1: Advanced quality partnership schemes

A quality partnership scheme in an area in England may impose restrictions on the registration of

local services and must specify criteria by reference to which a Traffic Commissioner must decide

whether or not to accept an application for registration. This will impact on the operator of a local bus

service which runs in a quality partnership scheme area.

Clause 4: Franchising Schemes

Operators of local bus services who run local services across the border from Scotland and Wales into

a franchise area in England, unless not subject to regulation under a franchising scheme or operating

under a local service contract, will have to apply for a service permit to be able to operate in that area.

For the purposes of TUPE, such operators will also have to provide the relevant authority with

information about any employees that transfer to another operator as a result of franchising.

Clause 5: Power to obtain information about local services


a franchise area in England will be obliged to provide information to the requesting authority about

local services in the authority’s area in connection with its functions in relation to franchising.

Clause 6 (Introducing Schedule 2): Further amendments

If an operator of a local bus service who runs a local service across the border from Scotland and

Wales contravenes the provisions prohibiting operation in a franchise area, or fails to provide

information to a franchising authority when required to do so, including in relation to TUPE matters,

the Traffic Commissioner may order that monies be paid by the operator. If an operator does not pay

10 References in this Annex to an effect of a provision being minor or consequential are to its being minor or consequential for the purposes of Standing Order No. 83J of the Standing Orders of the House of Commons relating to Public Business.


(HL Bill 2)

37

as ordered, a penalty may be imposed in relation to orders that are not already a penalty. A penalty

can be enforced as a civil debt. Conditions may also be attached to a public service operator’s licence

in the same circumstances as those that enable an order to be imposed.

Clause 9: Enhanced partnership plans and schemes

Operators of cross border services which operate in an enhanced partnership area must comply with

requirements imposed by the enhanced partnership scheme within the scheme area. Failure to comply

would result in the service registration being terminated by the Traffic Commissioner.

Clause 10: Information about local services


an enhanced partnership area in England will be obliged to provide relevant information to the

requesting authority for the purpose of it preparing its enhanced partnership plan and scheme.

Clause 15 (introducing Schedule 4): Further amendments

If an operator of a local bus service who runs a local service across the border from Scotland and

Wales contravenes a requirement that applies to a local service area or fails to provide information to

an authority when required to do so, including in relation to TUPE matters, the Traffic Commissioner

may order that monies be paid by the operator. If an operator does not pay as ordered, a penalty may

be imposed in relation to orders that are not already a penalty. A penalty can be enforced as a civil

debt. Conditions may also be attached to a public service operator’s licence when a requirement is

contravened or if information is not provided in relation to TUPE matters.

Clause 17: Power to require the provision of information about English bus services

Except in Greater London, new applicants registering bus services, existing operators, franchising

authorities and in some circumstances traffic commissioners may be required to provide information

about routes, timetables, fares and tickets for local buses, including live information about bus arrival

times. The information would be “open” to the public and software developers. Information will need

to be provided for the part of any cross border service that has one or more stopping places in

England except for Greater London.

Clause 18: Variation or cancellation of registration: service information

Bus operators wishing to vary or cancel a bus service may have to provide historic patronage and

usage data for that service to the local authority. The authority may disclose this information to other

operators tendering for the varied or cancelled service. Information will need to be provided with

respect to any cross border service that is registered under section 6 of the Transport Act 1985 and has

a stopping place in the local transport authority in England that has requested the information.

Clause 19: Rail replacement bus services

A rail replacement bus service in England provided under an agreement with the provider of a

railway service does not have to be registered with the traffic commissioner. In Scotland and Wales it

remains the case that such as service has to be registered with the Traffic Commissioner unless it is

exempted for some other reason. The part of a cross border rail‐replacement service that runs in

England will not need to be registered with the Traffic Commissioner.

Clause 20: Registration of English local services: fees where functions contracted out

Traffic Commissioners’ function in registering bus services may be taken over by another body and

that body will be able to charge and keep fees payable by operators when registering a service as


(HL Bill 2)

38

prescribed in regulations. The “English” part of any cross border service will need to be registered

with the body that is undertaking the Traffic Commissioners’ registration functions.

Subject matter and legislative competence of devolved legislatures The Department considers the provisions that are identified as being within the legislative competence

of the National Assembly for Wales to be so because they relate to one of the subjects listed under the

headings in Part 1 of Schedule 7 to the Government of Wales Act 2006, namely “transport facilities and

services” which is listed under the “Highways and transport” heading (paragraph 10 of Schedule 7 to

that Act) and does not fall within any of the exceptions specified in that part of the Schedule.

The Department considers the provisions that are identified as being within the legislative competence

of the Scottish Parliament to be so because they relate to local bus services, which is not a reserved

matter under Schedule 5 to the Scotland Act 1998 (and, in particular, is not reserved by Head E ‐

Transport in that Schedule).

The Department considers the provisions that are identified as being within the legislative competence

of the Northern Ireland Assembly to be so because they relate to local bus services which is a

transferred matter under the Northern Ireland Act 1998 (it not being either an excepted matter under

Schedule 2 to that Act or a reserved matter under Schedule 3 to that Act).


(HL Bill 2)

39

HL Bill 2–EN 56/2

BUS SERVICES BILL [HL]

EXPLANATORY NOTES

These Explanatory Notes relate to the Bus Services Bill [HL] as introduced in the House of Lords on 19

May 2016 (HL Bill 2).

__________________________________________________________

Ordered by the House of Lords to be printed, 19 May 2016

__________________________________________________________

© Parliamentary copyright 2016

This publication may be reproduced under the terms of the Open Parliament Licence which is

published at www.parliament.uk/site‐information/copyright

PUBLISHED BY AUTHORITY OF THE HOUSE OF LORDS

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